Chowrangi

Poverty exists in a society where people live below minimum material and social level, it is a multi-dimensional concept which is present in both social and as well as material dimension. It is much easier to quantify material needs that is food, clothing, health care, sanitation, literacy rate and security.

Poverty is what in essence differentiate a developed and a developing society at large. Poverty is rapidly becoming an alarming concern in the third world. Over the years this menace has exacerbated recognizing the situation, governmental and non-governmental agencies working to eliminate the poverty. Shortage of capital is primarily the basic hurdle for the poor to get rid of poverty. That is why he remains pure and cannot become self-sufficient.

Initial capital if channeled effectively can help reduce poverty to a greater extent, and can overall benefit the society. The purpose of such capital is to jump-start a business or any work that can make the individual self-reliant. Micro credit being immediate and tangible benefit to the poorest members of the society while promoting social change and empowerment too.

A micro-credit program is first step to poverty alleviation and an improved standard of living. As long as a development is concerned we tend to check the results in terms of GDP or any other satiable index that conveys the situation but it does not bring out the actual profiles of the ground realities, which are pitch harsh.

Micro credit has established its usefulness in providing immediate substantial benefits and long-term structural help to the poorest of the third world countries. Not only it provides material assistance, it also gives social teaching. Micro credit has also proven to be a good financial risk for the banks themselves. While there are high administrative overhands to processing such a large number of small loans, several micro-credit programs have demonstrated that they can achieve very high rates of repayment.

So it works after all and largely achieves its goals of poverty reduction and empowerment for the poor and landless people, wages, income and life standard go up if its works effectively.

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